PF – Pension capital savings PF 2 – Retirement capital savings

2021 Annual Report

Pension Fund of Credit Suisse Group (Switzerland)

2021 Annual Report

Pension Fund of Credit Suisse Group (Switzerland)

As of December 31, 2021

Key figures

Coverage ratio

130.9%

Total assets (CHF)

19 billion

Performance

9.5%

Reserve for fluctuations in asset value (CHF)

2.5 billion

Technical interest rate

1.2%

Balance sheet

2021 2020
in CHF mn in CHF mn
Total assets 19,376 18,094
Active participants’ liabilities 6,404 6,192
Pensioners’ liabilities 7,838 8,032
Actuarial provisions 364 641
Reserve for fluctuations in asset value 2,480 2,380
Operative account 2021 2020
in CHF mn in CHF mn
Employee contributions 146 143
Employer contributions 297 290
Purchase amounts 51 41
Net return on investments 1,624 901
Termination benefits on leaving the Pension Fund 355 572
Retirement pensions paid out 411 414
Surviving spouse's pensions paid out 65 64
Disability pensions paid out 23 23

The Pension Fund of Credit Suisse Group (Switzerland), with total assets of approximately CHF 19.4 billion, around 18,000 active participants, and more than 11,000 pensioners, is one of the largest pension funds in Switzerland.

Interest on retirement savings capital

The Board of Trustees of the Pension Fund set an interest rate of 6.5% on the retirement savings capital for the 2021 reporting year. The minimum BVG interest rate is 1.0%.

Comparison of interest on retirement savings capital and minimum BVG interest rate, 2017–2021

The Board of Trustees set an interest rate of 6.5% on the retirement savings capital for 2021. At the same time, it has defined a prospective interest rate of 1.0% for 2022. The prospective interest rate determines the intrayear interest paid on retirement savings capital, e.g. upon departure or retirement.

Coverage ratio

The coverage ratio is 130.9%. The Pension Fund has unlimited risk ability.

Coverage ratio, 2017–2021

The coverage ratio as of the end of 2021 stood at 130.9%; this represents a noticeable rise, since it stood at 120.5% as of the end of 2020. Ample reserves exist for fluctuations in asset value; the target value is currently 17.0%. The Pension Fund thus has non-committed funds and unlimited risk ability.

Cost-of-living allowance for pensioners

Each year, the Board of Trustees reviews whether to grant a cost-of-living allowance. In view of the prevailing and historically low inflation environment, the Board of Trustees decided not to grant any new increase in the cost-of-living allowance as of January 1, 2022. Pensions were last adjusted on January 1, 2007. The cumulative increase in the cost of living since then amounts to 3.2%.

Performance

The Pension Fund of Credit Suisse Group (Switzerland) achieved a performance of 9.5% in the 2021 reporting year (previous year: 6.2%).

Performance in recent years

2017
9.0%
2018
-2.2%
2019
11.3%
2020
6.2%
2021
9.5%

Investments

The Pension Fund of Credit Suisse Group (Switzerland) has a broadly diversified portfolio.

Investment categories as of December 31, 2021

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The Pension Fund of Credit Suisse Group (Switzerland) conducts an annual detailed asset and liability manage-ment study, in which it analyzes whether the assets and benefit obligations are aligned with one another in the medium and long term. This constitutes the basis for defining the Pension Fund's investment strategy, risk ability, risk tolerance, and performance objectives.

Number of insured participants

There was only a slight drop in the number of pensioners and the number of insured participants in 2021.

Number of insured participants as of December 31, 2021

Active participants
17,844
Pensioners
10,995
2021 2020
Active participants 17,844 17,893
Pensioners 10,995 11,030
Total number of insured participants 28,839 28,923

The total number of insured participants decreased by 84 to 28,839 persons. At the end of 2021, the Pension Fund had 17,844 active participants and 10,995 pensioners. Active participants account for 62% of the total number, with pensioners accounting for 38%.

Active participants

The number of active participants has not changed significantly; it decreased by 0.01% – from 17,893 to 17,844 insured participants.

Age category as of December 31, 2021

2021 2020
Men 10,800 10,900
Women 7,044 6,993
Total number of active participants 17,844 17,893

The largest age category, comprising 5,126 active participants, is participants between 35 and 44 years old. The average age of active participants is 42.9 years for men and 40.3 years for women.

Pensioners

The total number of pensioners decreased by 35 to 10,995 persons as of the end of the year. This figure comprises all pensioners, including retirement pension recipients, disability pension recipients, surviving spouse's pension recipients, child's pension recipients, and support pension recipients.

Type of pension as of December 31, 2021

% Men Women Total
Retirement pensions 74.4% 5,104 3,080 8,184
Surviving spouse’s pensions 16.3% 162 1,631 1,793
Disability pensions 4.7% 239 274 513
Child’s pensions 4.0% 194 250 444
Support pensions 0.3% 20 12 32
Divorced spouse’s pensions 0.3% 2 27 29
Total number of pensioners 100% 5,721 5,274 10,995

The 8,184 retirement pension recipients account for the majority of pensioners, making up 74.4% of the total. The 1,793 recipients of a surviving spouse's pension constitute the second-largest group at 16.3%. The Pension Fund also paid 29 divorced spouse's pension in the 2021 reporting year.

Number of pensioners by age as of December 31, 2021

2021 2020
Men 5,721 5,762
Women 5,274 5,268
Total numbers of pensioners 10,995 11,030

The 65–74 age group comprises the largest number of pension recipients, with a total of 3,852 persons. There are 113 insured participants in the 95-plus age group.